Nabors Tells SEC Fracking Isn’t a Risk to Water Supplies

By David Wethe -
Sep 27, 2012

Nabors Industries Ltd. (NBR), the world’s
largest onshore rig contractor, said hydraulic fracturing
doesn’t pose a major risk to underground water supplies in
response to questions from the U.S. Securities and Exchange
Commission.

Publicly available fracking studies, including the
Environmental Protection Agency’s 2004 report, haven’t
“substantiated a material risk” of drilling fluids spilling
into other areas, Hamilton, Bermuda-based Nabors said in a July
27 letter to the SEC made public in a filing today.

The SEC has reviewed filings and asked companies such as
Nabors, Halliburton Co. (HAL) and SandRidge Energy Inc. (SD) to answer
questions about fracking operations, a technique that blasts
water, sand and chemicals into underground rock to unlock
hydrocarbons. The SEC said possible risks to comment on include
spillage and fracking fluids seeping underground.

Nabors told the SEC the biggest risk it faces related to
fracking comes from the threat of increased regulations.

“Increased regulation of hydraulic fracturing could result
in reductions or delays in drilling and completing new oil and
natural-gas wells, which could adversely impact the demand for
fracturing and other services,” the company said.

The SEC has completed its review of Nabor’s filings, the
company said.